Does forex trading need a strategy? Because forex trading is a business. A business without a strategy and planning is equal to disaster. For example, when the Covid-19 disaster hit in Brasil, many businesses collapsed, especially those that did not have a well-planned exit strategy. But don’t worry. The good news is, http://www.forextradingbrasil.com/ provides a lot of educational content that you can use to get more information about forex trading for you who wants to get started.
The best trading strategy is one that can generate consistent profits in the long term. A good strategy must also be following the trader’s character as a user. More importantly, it must be by the trader’s capital strength. But one thing that needs to be remembered that is that the strategy must be easy to understand and use. Why should it be easy? Because if it’s complicated, our minds will get drained easily and it’s increasingly difficult to make the right decisions, especially when the market is volatile. So, if we summarize, the characteristics of the best forex strategy are easy to understand and used by the trading character of the trader and can generate consistent profit in the long run.
We take an example of a simple forex trading strategy that we often use, namely a combination of the Exponential Moving Average (EMA) indicator and the Stochastic Oscillator (Stoch). This strategy only requires three easy steps. If both EMAs point upwards and the majority of the candlesticks are above the EMA, then the price direction is said to be Bullish. Conversely, if both EMAs are pointing downwards and the majority of the candlesticks are below the EMA, then the price direction is said to be Bearish. This correction occurs in the gap between the EMA 50 and EMA 100. Next, you need to wait for the signal. Buy signal (if the EMA condition is BULLISH) from stochastic and sell signal (if EMA condition is BEARISH) from stochastic. If all of these conditions are met, we can open a buy or sell position. You can try to practice it on a demo account for trading practice.